Level 5

EIP 3 payment

Forum|Forum|4 years ago
July 23, 2021
5 replies
21 views

my client received a direct deposit in March 2021 in the amount of $1400.00. Based on filing status and income they qualified for this amount. My client called me this week and advised me that they received a paper check form the IRS in the amount of $1,400.00. The check says Economic Impact Payment. My thinking is that this is an error and the money will need to be returned. Looking for additional guidance and opinions.

This topic has been closed for replies.

sjrcpa

Level 15

Are they married? Children?

Receive Social Security?

The more I know the more I don’t know.

S

Summit1Author

Level 5

single, receives social security, and no dependents

qbteachmt

Level 15

"In general, most people will get $1,400 for themselves and $1,400 for each of their qualifying dependents claimed on their tax return."

How many people?

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S

Summit1Author

Level 5

Single, no dependents

qbteachmt

Level 15

You stated this: "Based on filing status and income they qualified for this amount."

But this info would be for 2021, which isn't over yet. The EIP 3 is the same as the others, which means, issued based on a projection, based on prior years' filings. And then reconciled on the 2021 tax return.

If this is definitely a duplicate payment, it can be void and returned:

https://www.irs.gov/newsroom/economic-impact-payment-information-center-topic-i-returning-the-economic-impact-payment

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qbteachmt

Level 15

If you sign up for the e-newsletters to come to your email:

https://www.irs.gov/newsroom/e-news-subscriptions

this one came today:

e-News for Tax Professionals 2021-29

With this info:

https://www.irs.gov/newsroom/more-than-2-point-2-million-additional-economic-impact-payments-disbursed-under-the-american-rescue-plan

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S

Summit1Author

Level 5

Single filer no dependents

BobKamman

Level 15

Have they recently received a notice about their 2019 return? I have seen some 2019 returns, without refunds, that were not processed until well into this year. Some people received EIP#3 based on 2019, even though not eligible based on 2020. I haven't seen one, but it's possible that some people received $1,400 based on 2019, and then another $1,400 based on 2020.

What makes you think that it has to be returned? At least, not until IRS can cite a statute that overpayments are not allowed. Thousands of people are receiving overpayments, because their income or dependents have changed.

S

Summit1Author

Level 5

No notices received about 2019 return. The amounts client was due for Stimulus 1 and 2 were correct and were received by direct deposit. Stimulus 3 was received in early 3/21 ( 2020 return was filed on 4/10/21 ).The client's income was lower in 2021 than 2020 so it seems the IRS would know the taxpayer received the correct amount. There has been no dependent changes either. The other thing that makes me feel like it is an error is that the IRS sent a paper check for this latest payment. I efile this client and he makes all estimated payments through EFTPS.

I have not seen anything posted from the IRS that overpayments need to be returned but this the agency that has yet to process over 35 million 2020 returns.

qbteachmt

Level 15

You stated the person receives SS, as well as filing a tax return. There could be duplication through this process. The March payment is not based on 2020 or 2021, obviously.

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